Startups strong despite economy

Monday, February 8, 2010

From CUNA

McLEAN, Va. (2/8/10)--The desire to own a small business hasn't dwindled, even in today's economy. About 600,000 businesses are formed every year; roughly half will fail within their first five years. But that reality hasn't deterred budding entrepreneurs from following their dreams. With can-do attitudes, hordes of potential business owners want to work for themselves (USA Today Jan. 31).

Whether you're pursuing starting a business because of a layoff, you've retired from your "normal" job, or have decided to turn your passion into a career, these strategies can help make your small business a success, according to Entrepreneur.com, an online resource for small-business owners:

• Choose your industry wisely. Consider barriers beyond start-up costs such as regulatory hurdles, the need to hire staff or a sales force, and navigating vendor relationships.
  
  
• Focus on problem, not solution. Many people fall so in love with their product that they become blind to hurdles and criticism. Successful business owners are flexible about finding a solution to a need.
  
  
• Know when to get help. Don't try to do something yourself to save money if it's something a professional can do better, such as drafting legal documents.
  
  
• Use free or low-cost resources. Take advantage of literature and other resources available on the Internet and in your community about running a small business. Find networking groups that will offer honest feedback about your product or service. Universities and community colleges can offer free or low-cost course work, books, and seminars.
  
  
• Build credibility. Learn the industry's nuances and develop relationships with vendors, retailers, and contractors before launching your business. Gather information from industry reports to learn industry best practices.
  
  
• Apply your strengths. Use knowledge from other jobs and situations when developing your business. You can apply the same business skills in multiple industries.